© Reuters. The logo of Adani Group is seen on the facade of a building on the outskirts of Ahmedabad, India, on April 13, 2021.REUTERS/Amit Dave/File photo
(Reuters) – India’s Adani Group has acquired Holsim (Six:) AG’s cement business in India became the country’s second-largest cement producer at $10.5 billion, Adani Group said in a statement on Sunday.
The conglomerate of Asia’s richest man, Gautam Adani, has acquired a 63.19 percent stake in Ambuja Cements Ltd. and its subsidiary ACC in a fierce bidding war with local companies.
The combined capacity of Ambuja and ACC produces at least 70 million tonnes of cement per year, second only to UltraTech Cement, which has a capacity of 120 million tonnes.
Adani Group said in a statement that the Adani family has entered into a definitive agreement through an offshore special purpose company to acquire the entire stake in Switzerland-based Holcim Ltd in Ambuja and ACC.
Holcim said in a statement that it had signed a binding agreement with Adani Group to acquire Holcim’s business in India, including its stake in Ambuja Cement, which owns a 50.05% interest in ACC, and its 4.48% direct stake in ACC. Holcim will receive a nearly $6.4 billion stake.
Adani Group said it would acquire more shares through a public offering.
The deal is expected to close in the second half of 2022, Holcim said.
Adani Enterprises Ltd., the flagship company of the Adani Group, owns two cement subsidiaries. Adani Cement Ltd plans to build a complex in western Gujarat and Maharashtra, according to an official from the Adani Group.
The divestment is Holcim’s latest move as it seeks to reduce its reliance on cement production, an industrial process that generates high levels of carbon and thus has turned off many environmentally conscious investors.
(1 USD = 1.0017 CHF)